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Venezuela to Raise Minimum Wage by 40%

Venezuela to Raise Minimum Wage by 40%

Venezuela is set to raise its minimum wage by 40%, in a move expected to worsen already high levels of inflation. The country is suffering from an economic crisis in which shortages of food and medicine are common, BBC reported. Venezuela’s economy has been hit by falling oil revenue and the plummeting value of the bolivar. President Nicolas Maduro announced the wage increase in his end-of-year address. He said the move would “protect workers” from what he called an economic war on the socialist nation by the United States and others. Speaking on television next to a Venezuelan flag, Maduro described the pay increase as “good news”. But there are fears the move will simply push inflation rates up faster. The opposition-led congress said that in the past year, prices had already risen by almost 1400%. Maduro, however, spent most of his speech blaming outside influences for Venezuela’s problems, saying nations like the United States were attacking its currency and sabotaging its oil industry.